Fiduciary Financial Advisor for Santa Barbara & Los Angeles
At Montecito Capital Management, we provide personalized financial advisory services for individuals and families in Santa Barbara and Los Angeles. We operate as a fiduciary, pure fee-only practice, which means we are compensated solely by our clients and do not receive commissions or incentives from selling financial products. This ensures our guidance is objective, transparent, and free from conflicts of interest, fully aligned with your best financial goals. Our fees are tied to the assets we manage on a sliding scale, so the percentage rate decreases as your portfolio grows, keeping costs fair and aligned with your success.
From portfolio management and retirement planning to estate strategy and wealth transfer, we combine disciplined, evidence-based investment practices with a client-centered approach. Our goal is to make complex financial matters clear and manageable, helping you make confident decisions for long-term financial success.
Affordable Sliding Scale Fee Model – "Pure" Fee-Based Practice
- ‘Pure’ Asset-Based Fee Practice – A declining advisory rate schedule
- We offer Free Complimentary Initial Portfolio Reviews
It is our goal to keep our “pure” fee-only practice competitive and we have found that that our clients understand the value-proposition between fees paid and the comprehensive financial, portfolio, retirement and estate planning services we continually provide. We also very much hope to have an opportunity to convey the value of our services to you.
Our Advisory Fees - Sliding Scale
Our active advisory fees start at 1.0% of assets managed, declining to a low of 0.6% of assets for the highest net worth bracket of actively advised accounts (fee chart is provided at bottom of page). Studies show these advisory fees are approximately 30% lower on average than the overall financial advisory industry and are also in the bottom quartile for fee-based distribution for advisors. In fact, 25% of advisors charge more than 1.75%, while 30% charge more than 1.5% – which is exorbitant.*
Declining Fee Rate Model
| Actively Advised Assets | Fee as % of Portfolio Size |
| $250,000 – $750,000 | 1.00% |
| $750,001 – $2,500,000 | 0.90% |
| $2,500,001 – $4,500,000 | 0.80% |
| $4,500,001 – $7,500,000 | 0.70% |
| $7,500,001 – $10,000,000 | 0.60% |
| Family Office Rates | 0.60% – 0.45% |
The minimum asset value of $250,000 is largely driven by the diversity of asset classes and individual holdings employed for portfolio risk management, along with the respective purchase minimums for select mutual fund investment vehicles (when applicable, as portfolios also include individual stocks, individual bonds and exchange traded funds [ETFs]). Under certain circumstances, our advisors have the discretion to waive the minimum account value.
Value Added by Professional Advisory Services
It is also important to recognize that industry research has shown that professional advisory services add value to client portfolios. For example, two different studies by both Evestnet & Vanguard found advisors beat market benchmarks by an average of +3% a year, with Evestnet finding tax benefits alone add up to more than +1% annually over the broad market (for 1995-2014 period). Similarly, the Vanguard study found advisors overall added +3% each year with portfolio construction, behavioral coaching (e.g. avoid emotional investment decisions like panic selling) and wealth management. Perhaps this added-value is why client satisfaction with financial advisors is amongst the highest relative to all of the industries monitored by the American Customer Satisfaction Index (ACSI).
Potential Tax Offsets on Advisory Fees
Fortunately, traditional investment advisory fees on taxable assets managed generally can also be considered tax deductible under “miscellaneous investment-related itemized deductions.” Miscellaneous itemized deductions are generally limited to the amount of expenses over and above 2% of your adjusted gross income (AGI). In other words, there’s a floor below which you lose the ability to deduct. The point being is the real cost of advisory fees are typically further reduced with itemized write-offs (please consult with your tax specialist).
Guidance for Ultra-High-Net-Worth Families
For ultra-high-net-worth families with assets in excess of $10,000,000, we provide independent, future-oriented financial guidance including:
- Oversight of professional advisors & asset managers
- Wealth transfer & philanthropic planning
- Real estate strategy
- Investment guidance
- Lifestyle management
Fair and Flexible Fees for Retirees with Limited Growth Portfolios
Finally, we offer a separate, lower fee schedule for many retirees. This reduced fee is specifically designed for clients who are living primarily off their portfolio income and have limited resources, rather than abundant assets. For these clients, we customize portfolios to generate the income needed to support their lifestyle expenses.
Because these portfolios focus on income rather than growth, and growth typically helps offset our standard fees, the traditional fee structure is not appropriate. In such cases, we accommodate with a needs-based, reduced fee schedule to ensure our services remain fair and accessible. Please contact our offices to learn more about the qualified retiree fee rates and see if you may be eligible.
Industry Fee Comparison
Another recent 2017 Financial Advisor IQ article has identified Ameriprise, UBS, Morgan Stanley, Wells Fargo and Merrill Lynch as having the highest Advisor fees in the nation. According to the study the range of Advisors are quite high for many of the larger firms, such as Ameriprise 1.75%-3.00%, UBS 2.5%, Morgan Stanley 2.0%-2.5%, Wells Fargo 1.5%-2.0%, etc. In our view, these types of lofty fees cannot be justified.
Our Value Proposition
Financial advisor fees are justified because they reflect the depth, breadth, and measurable value of the services provided, which is far beyond simple investment management. Our skilled advisors deliver comprehensive financial planning and extensive portfolio management, including retirement readiness, robust investment plan, tax optimization, estate structuring, risk management, and behavioral coaching. Moreover, our advisory fees align interests between clients and our financial professionals to promote fiduciary care, personalized advice, and proactive financial oversight.
Morningstar’s 2024 study found that clients with a holistic advisor relationship reported 25% higher financial confidence and 40% better goal attainment compared to self-directed investors. In essence, advisor fees are not a cost—they are an investment in expert guidance, strategic clarity, and long-term financial peace of mind.
Contact us for a complimentary consultation: (805) 965-7955 | Email: ContactUs@McapitalMgt.Com
*PriceMetrix Insights (2011), “Fee & Managed Asset Pricing”) examines key metrics and trends in the pricing of fee and fee-based accounts. The analysis is based on the PriceMetrix aggregated North American database representing 15,000 advisor books, 2.3 million investors, 380 million transactions, $1 million fee-based accounts, and over $850 billion in investment assets.
Disclaimer: The website provides general information regarding our business along with access to additional investment related information. Material presented on this website is believed to be from reliable sources and is meant for informational purposes only. The intent is to provide helpful information, which should NOT be construed as investment advice. We do not guarantee its accuracy, nor completeness, and it is not intended to be the primary basis for investment decisions. We do not make personal investment recommendations to people or entities except to those who have engaged us expressly for the purpose of providing professional investment advisory services. Montecito Capital Management Group’s ADV filing is available online at http://www.adviserinfo.sec.gov and current FORM ADV Part 2, which describes the services offered, fees charged and detailed company information, among other things, is available upon request free of charge. To a certain degree we are limited in our fiduciary capacity by the firm’s non-discretionary client relationship, whereby the client dictates the investment parameters and contractually agrees to accept sole responsibility for their choices.